Small Renewable Energy Power Programme (SREP) - ST

8/7/2019 Small Renewable Energy Power Programme (SREP) - ST

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Renewable Energy

Malaysia is blessed with vast renewable sources of energy, viz. biomass, biogas, solar, wind and

mini-hydro. The potential for Renewable Energy (RE) is enormous, especially for biomassenergy; whereby these resources are not traded and mostly homegrown. The potential of mini-

hydro projects especially the run-of-the-river types is also huge, as the energy available from the

streams of rivers in the country has been proven to provide considerable contribution to thesupply of electricity in the rural areas. Solar energy is another type of RE resource that is

abundant and readily available, as Malaysia is geographically located at the equator. In view of

these potentials, the Malaysian Government encourages greater use of these non-depleting andenvironmentally friendly energy sources. The Government policies on RE have been

documented in the Eighth and Ninth Malaysia Plans (8MP and 9MP), and the ten-year Third

Outline Perspective Plan (OPP3). The integration of RE as the "Fifth Fuel" in the national energyscenario supports these policies, and encourages rapid up-take for physical implementation of

RE projects. The core focus of the policies was to supplement our national energy mix to include

contribution from RE and reducing the national dependence on depletable fossil fuel.

The Malaysian Government also introduced fiscal incentives in the form of Pioneer Status (PS)

or Income Tax Allowance (ITA) and tax exemption on RE equipment to act as the push factorto stimulate the emergence of RE activities and in particular to encourage the generation of RE

using biomass, hydro and solar. The first set of incentives appeared in the national Budget for

2001 and it has been enhanced over the years. Applications for the fiscal incentives are to besubmitted to MIDA.

Small Renewable Energy Power Programme (SREP)

What is SREP?

In line with its commitment to intensify the development of RE as the Fifth Fuel, the

Government has launched the Small Renewable Energy Power (SREP) Programme on 11th May2001. The SREP Programme was initiated by the then Ministry of Energy, Communications and

Multimedia (now known as Ministry of Energy, Green Technology and Water), with the aim of

promoting a wider use of the huge amount of RE resources available in Malaysia, particularly itsutilisation in power generation.

Under this SREP Programme, small power generation plants utilising renewable energy can

apply to sell their electricity to the utility through the distribution grid system. The utilisation of

all types of RE sources including biomass, biogas, municipal wastes, solar, mini-hydro and wind

are allowed in the SREP Programme. In order to co-ordinate the implementation of the SREPprojects, a Special Committee on Renewable Energy (SCORE) was set up under the Ministry of

Energy, Water and Communications (now known as the Ministry of Energy, Green Technology

and Water); with the Energy Commission acting as the Secretariat to the SREP Programme.

SREP Guidelines

SCORE will adopt the following Guidelines in promoting the development of grid-connected

small RE power plants:

1. SREP shall apply to all types of renewable sources of energy, including biomass, biogas,

municipal waste, solar, mini-hydro and wind.


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2. Project developers will have to negotiate the Renewable Electricity Purchase Agreement

with the relevant Utility, including the selling price on a willing-seller, willing buyer

basis, based on take and pay.

3. The RE electricity producer shall be given a licence for a period of 21 years, to be

effective from the date of commissioning of the plant.

4. RE electricity producers will be responsible for all the costs of the grid-connection, therelevant Utility system reinforcement (electric cables, transformer, switchgears and other

protection equipment) and the necessary metering installation. The distribution grid

interconnection shall be made at a voltage between 11 33 kV.

5. The small RE power plant shall be located within a distance of 10km from the nearest

interconnection point. Exception is given for hidro power generation project.

6. No stand-by charges shall be levied. However, if back energy is requested by project

developers, it will be charged accordingly with the prevailing tariff.

7. Power generation through co-generation technology shall be given special preference.

8. Maximum capacity of a small RE power plant designed for sale of power to the grid shall

be 10 MW. A power plant can be more than 10 MW in size, but the maximum capacity

that will be allowed for power export to the distribution grid will be no more than 10MW.

9. The small RE power plant must be ready for grid-connection within 12 months from the

date of approval for such grid connection. This is applicable for existing plant that wish

to connect to the grid. However, in the case of proposals for setting up new RE power

plants (or where re-powering is proposed) that require the installation of new boilers orturbo-generator systems, the plant shall be commissioned within 24 months. The

stipulated period of construction until commissioning shall be counted from the date of

signing of the Renewable Electricity Purchase Agreement (REPA) between the developerand the utility.

10.

The RE power plant must meet all environmental regulations set by the Department ofEnvironment (DoE), and the developer of the project is responsible for obtaining the

necessary approval of DoE, and any other statutory approvals required.

11. The minimum of 30% equity in an RE power plant project must be by Bumiputera

shareholder(s). Foreign agency/company is allowed to participate in SREP project withmaximum participation equity of 30%.

Process Flowcharts for Applications of SREP Projects


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*For more information on the license application procedures, please refer to the Licensing Unit,Electricity Supply Regulation Department, Suruhanjaya Tenaga

SREP Approval Application Process Flowchart


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* Applicant should observe and comply with all required approvals for project implementation


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SREP License Application Process Flowchart


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Status of SREP Projects

Small Renewable Energy Power Programme (SREP) - ST

Documents

Transcript of Small Renewable Energy Power Programme (SREP) - ST